...Chapter 3:Problem 2 2. Consider an economy in which taxes, planned investment, government spending on goods and services, and net exports are autonomous, but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption, the marginal propensity to consume, planned investment, government purchases of goods and services, and net exports: Ca=1500-10r ,c=0.6 ,T=1800 Ip=2400-50r ,G=2000 ,NX=-200 a. The marginal propensity to save equals: 1-C=1-0.6=0.4 b. Autonomous planned spending, Ap, equals Ca − cTa + Ip + G + NX = 1,500 − 10r −.6(1,800) + 2,400 − 50r + 2,000 − 200 = 4,620 − 60r. Therefore, at an interest rate equal to 3, autonomous planned spending equals 4,620 − 60(3) = 4,440. c. Since the marginal propensity to save equals 0.4 and the equilibrium level of income equals Ap /s, the equilibrium level of income equals 4,440/.4 = 11,100, given the interest rate equals 3. d. Since autonomous consumption changes by four percent of any change in household wealth and the decline in the housing market in 2006–09 and drop in the stock market of 2007/09 reduces household wealth by 3trillion dollars, the decrease in autonomous consumption that results from the decline in household wealth equals .04(3) = 120 billions. e. Since the decrease in autonomous...
Words: 601 - Pages: 3
...Chapter 9: Problem 4 4. The purpose of this problem is to study the sacrifice ra- tio. Suppose that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent. Natural real GDPgrows by 3 percent per year over the next five years. Actual real GDPdecreases by 2 percent in the first year, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 per- cent in the fourth year, and 3.5 percent in the fifth year. Inflation in years 1–5 equals 3.1 percent, 2.2 percent, 1.6 percent, 1.3 percent, and 1.1 percent, respectively. (a)Calculate natural real GDPfor years 1–5. The natural real GDP increase by 3% for next 5 years So 1st year Natural real GDP=11000*1.03=11,330 2nd year Natural real GDP=11330*1.03=11,669.9 3rd year Natural real GDP=11669.9*1.03=12,020 4th year Natural real GDP=12020*1.03=12,380.6 5th year Natural real GDP=12380.6*1.03=12,752 (b)Calculate actual real GDPfor years 1–5. Actual real GDP decreases by 2 percent in the first year, but then grows by 4 percent in the second year, 5.5 percent in the third year, 4.2 per- cent in the fourth year, and 3.5 percent in the fifth year. So 1st year 11000*0.98=10,780 2nd year 10780*1.04=11,211.2 3rd year 11211.2*1.055=11,827.8 4th year 11827.8*1.042=12,324.6 5th year 12324.6*1.035=12,756 (c)Calculate the output ratio for years 1–5. The output ratio equals (10,780/11,330)(100) = 95.1 in the first year. 2nd...
Words: 453 - Pages: 2
...1. The Berwyn Company is considering the addition of a new product to its product line. The firm has plenty of excess manufacturing capacity to produce the new product, and its total fixed cost would be unaffected if the new product were added to its line. Nonetheless, the firm’s accountants decide that a reasonable share of the firm’s present fixed costs should be allocated to the new product. Specifically, they decide that a $300,000 fixed charge (cost) will be absorbed by the new product. The variable cost per unit of making and selling the new product is $14, which is composed of the following: Direct labor $8.20 Direct materials $1.90 Other $3.90 Total $14.00 a. Should the Berwyn Company add the new product to its line if it can sell about 10,000 units at a price of $45? Explain. (5 points) b. Should it add the new product to its line if it can sell about 10,000 units at a price of $25? Explain. (5 points) c. Should it add the new product to its line if it can sell about 10,000 units at a price of $20? Explain. (5 points) d. What is the minimum price (that the firm can get for the new product) that will make it worthwhile to add the new to its line? (5 points) 2. In early 1995, there was a sharp increase in the price of newsprint, the paper used by newspapers. Since newsprint is the second-largest expense for American newspapers (after salaries), publishers were concerned about the price hike. Suppose that the demand for newsprint can...
Words: 798 - Pages: 4
...Economics provides a range of choices to decision makers regarding the outcomes or impacts of alternative courses of action. Describe the two types of economic analysis (see table on page 3). Come up with three questions of your own as examples for each type of analysis, which relates to your community. a. The two types are positive and normative analysis. Positive analysis predicts the consequences of alternative action by asking “What is?” and What Will be?” b. Positive i. If two volunteer fire departments merge, which station and trucks will they use? ii. If minimum wage goes up, how many post office workers will be out of a job and how many post offices will close? iii. If the tax rate goes up, how many people will cut the amount that they are spending on goods? c. Normative i. Should the government step in and stop the merge? ii. Should the government change the minimum wage rate? iii. Should the government change tax rates? B) Define in your own words and use examples to illustrate: a. Opportunity cost i. Define: cost of an alternative that must be omitted in order to follow a certain action. ii. Example: picking weather you should go and party (could fail test) or stay home and study (could pass test) b. Ceteris paribus i. Define: Latin meaning that one variable may affect other variable. ii. Example: c. Marginal change i. Define: small one-unit change in value ii. Example: studying for 1 extra hour with higher grade on test by 5 points d. Scarcity ...
Words: 823 - Pages: 4
...1. i. Principle one has to do with allocating time because it has to do with Tradeoffs. Someone could decide to sleep longer, but then they wouldn’t have had as much time to study. This is also called opportunity cost, the opportunity cost is the price of the thing that you are giving up. ii. a. Scarcity: Scarcity is when there is a shortage of a good or a want. b. Efficiency: Is how well an item is produced. This is best with little waste or expense. c. Equality: distributing economic prosperity equally among everyone. d. Opportunity Cost: something that must be given up to get something else. e. Marginal Change: a small adjustment to a plan. f. Externality: the impact of one person’s actions on someone else. g. Productivity: The amount of goods or services produced. h. Incentives: Something that controls how a person will act. i. Property Rights: The ability of someone to own scarce items. 2. i. Inflation is the increase in the prices in the economy. The cause of inflation is the Government prints too much money, therefore there is a lot more money out there so prices rise. ii. The short-term trade-off between inflation and unemployment is the government spends more money (stimulus) which increases the demand for goods and services. The higher demand makes businesses raise their prices, but it also makes them hire more workers to help with the demand. The more people that are hired, the lower unemployment percentages. ...
Words: 698 - Pages: 3
...Economics 300 Homework #9 Name _______________________ Due ______________ Part 1 - Complete the Following Chapter Problems: Attach any extra pages to this cover sheet. Chapter 9: Discussion Questions: 2, 4, 5, 9, 10 Problems: 1, 3, 4, 12, 14, 15 Spreadsheet Problems: 1 Appendix Problems: 2 Part 2 – Additional Problems: Attach any extra pages or printouts to this cover sheet. 1. A consultant estimates that the demand for the output of Marston Chemical is represented by the equation Q = 2,000 – 50P. A. If the managers of Marston decide to maximize total revenue instead of profit, at would output rate should the firm operate? What is the revenue-maximizing price? B. Will the revenue-maximizing output rate be greater than or less than the profit-maximizing rate? Explain. 2. The manager of Biswas Glass Company estimates that total revenue from the sale of her firm’s product is given by the equation TR = 300Q – .5Q2. The total cost equation is estimated to be TC = 5,000 + 60Q + Q2. A. What is the profit maximizing price and output rate? What is the amount of economic profit? B. At what output rate is average cost at a minimum? At this output rate, what is the amount of economic profit? 3. Lyon Concrete is a monopoly supplier of concrete in northern Arkansas. Demand for the firm’s concrete is given as P = 110 – 4Q. Marginal cost is constant and equal to 10. A. What are the profit...
Words: 1022 - Pages: 5
...1.) The biggest trigger was subprime borrowers’ large (in absolute terms) losses of residential mortgage loans. IKB’s Rhineland off-balance-sheet vehicle was also no longer rolling over the ABCP it issued in U.S, markets to fund its asset-backed securities. Commercial paper investors feared risk of default on these securities because of IKB’s difficulty in meeting its funding obligation. This led to runs on key institutions which had a detrimental effect on the financial system as a whole. This “Run on Commercial Paper” occurred because it is easier and safer for lenders to withdraw their money in this type of situation even if the vehicles had no exposure to subprime mortgages. Thus, this financial strain also spread to the bigger banks that were funding these vehicles. This caused short-term funding in interbank market to freeze up. This, with the growing instability in global money, hurt the flow of lending to nonfinancial borrowers and ended up being more damaging than the subprime losses. Another trigger was a “sudden stop” in syndicated lending to large risky corporate borrowers because funding for these loans had recently transitioned from banks to special purpose vehicles that funded themselves through CLOs that were purchased by a variety of investors, including ABCP vehicles. This sudden stop was viewed negatively by investors and contributed to triggering the crisis. 2.) One of the vulnerabilities was the dependence on unstable short-term funding. Shadow banks,...
Words: 1349 - Pages: 6
...Econ 251 7:30 a.m. in EE 129 1:30 and 3 p.m. in CL50 224 Spring 2012 Instructor: Dr. Kelly Blanchard Office: KRAN 477 Office Phone: 494-7956 Office Hours: Tuesdays and Wednesdays 9-11 a.m. and by appointment Email: khb@purdue.edu Teaching Assistants: Curtis Ball (ball10@purdue.edu) KRAN B024E T/Th 11:30-1:30 p.m. 496-1664 Ross Winegar (rwinegar@purdue.edu) KRAN 487 W/Th 3-5 p.m. Weekly Review Session: Thursdays 6-7 p.m. in KRAN G9 Exam Review Sessions: Friday, February 10 from 6-7 p.m. in WTHR 200 and Monday, March 26 from 6-7 p.m. in WTHR 200 Administrative Assistant: Bree Miller KRAN 443 496-7964 (9 a.m. – 1 p.m. M-Th) bree2@purdue.edu Course Web Site(s): blackboard.purdue.edu (for accessing grades and course information or postings) www.pearsonmylabandmastering.com (for e-text, online homework, study guide) Course Overview: Econ 251 is intended to introduce you to microeconomic theory and its application in everyday life. The course will explain how individual consumers and producers together determine the prices and quantities of goods available in the marketplace. We will investigate the underlying incentives of consumers to buy goods and of firms to produce products that satisfy consumer demand. In addition, we'll look at how government can help or hinder market efficiency. The textbook for the course is Microeconomics for Economics 251, published by Pearson Custom Publishing (ISBN: 1256128546). The publisher has created an online resource site...
Words: 1729 - Pages: 7
...Mercer University Econ 151: Principles of Macroeconomics Homework 03_ Answers Name: Student ID: 1) As the real interest rate in the domestic loanable funds market increases, a. | the cost of purchasing goods and services during the current period will decrease. | b. | the net inflow of capital from abroad will increase. | c. | the inflationary premium will rise and the money rate of interest will decline. | d. | a trade surplus will occur. | ANS: B 2) Monetary policy can be most accurately described as a. | the use of government taxation and expenditures to achieve macroeconomic goals. | b. | the use of the government's regulatory powers to improve economic efficiency. | c. | the government provision of goods to improve economic efficiency. | d. | the deliberate control of the money supply to achieve macroeconomic goals. | ANS: D 3) The use of government taxation and expenditures to achieve macroeconomic goals is called a. | cyclical policy. | b. | monetary policy. | c. | fiscal policy. | d. | industrial policy. | ANS: C 4) As the U.S. price level rises relative to price levels in other countries, what would happen in the U.S.? a. | consumption and net exports would decline | b. | consumption and net exports would increase | c. | consumption would increase and net exports would decrease | d. | consumption would decrease and net exports would increase | e. | consumption and net exports would remain constant | ...
Words: 1654 - Pages: 7
...Determinants of the Study Habits in Science Among High School Students of Columban College Barretto By: Christine May A. Torres Cristianne T. Fajardo A Thesis Submitted in Partial Fulfillment Of the Requirement for the Degree of Bachelor of Science in Secondary Education Major in General Science April 2006 Approval Sheet This Thesis entitled Determinants of the Study Habits in Science Among High School Students of Columban College Barretto prepared and submitted by Christine May A. Torres and Cristianne T. Fajardo in partial fulfillment of the requirement for the degree of Bachelor of Science in Secondary Education Major in General Science, has been examined and is recommended for the acceptance and approval. ___________________ Dr. Eric A. Matriano Supervisor/ Professor ACKNOWLEDGMENT We would like to extend our deepest gratitude and appreciation to those people who have plays significantly in the pursuance of this research without the help of these following people this research would have been in vain. To Dr. Eric A. Matriano, thank you for being such an inspiring adviser who have shared so much knowledge and wisdom. Thank you for the patience and time you provide us. To Dr. Lolita B. Regalario, our college dean, thank you very much for the word of wisdom. To our professors in Science subject, Dr. Dave Bueno, Mrs. Josh Santos and Ms. Aireen...
Words: 14399 - Pages: 58
...INTRODUCTION There is little doubt that no two people study the same way, and it is a near certainty that what works for one person may not work for another. However, there are some general techniques that seem to produce good results. So I decided to concentrate on working for this research because it’s very important for the readers to read this so that they have to step up in learning styles. My purpose of doing this research is to develop myself and to serve this thing as stepping stone to make a thesis and in consideration in making a book. Now I am making this just to show you how the proper process of learning is. The purpose of this research is to provide us significant ideas about real learning styles, study skills and thinking skills in analyzing some neither questions nor problems that we don’t know and to improve and enhance our memory in studying some lessons in a book. It also improves us to organize our studies, express our ideas clearly and effectively and how to communicate with others clearly and fluently. The first part of this research is focused on defining the three bodies of skills and you will know the utilization of effective language-learning strategy is. These three bodies of skills approaches us to have more experience on how to learn to be critical to success in school, considered essential for acquiring new good grades and useful for learning through out’s life. Of course this convinces us that these skills can be applied in other areas...
Words: 1625 - Pages: 7
...internationalstudiesdefinitionkan... - Isalin ang pahinang ito 1 Dec 2011 – A HABIT is something that is done on a scheduled, regular and planned basis that is not relegated to a seccond place or optional place in one's ... Meaning of study habits wiki.answers.com › ... › Learning Theories - Isalin ang pahinang ito Relevant answers: What is the meaning of good study habits? good study habits is simply studying good. What is study habits? == Answer ==. The manner with ... What is the Definition of study habit wiki.answers.com/.../What_is_the_Definition_... - Isalin ang pahinang ito It means you are not distracted by anything, you have a certain place to go where it is quiet everyday where you study and do homework. Basically it means that ... What are study habits wiki.answers.com › ... › Education › Learning Tips - Isalin ang pahinang ito Study habits are the ways that you study - the habits that you have formed during ... It means you are not distracted by anything, you have a certain place to go ... Study Habits - Term Paper - Rojilei www.termpaperwarehouse.com/.../Study-Habi... - Isalin ang pahinang ito 9 Jan 2012 – Before we proceed, let's define the meaning of study and habit. Study is to buy out the time and dedicate self to application and the task of study ... Study skills - Wikipedia, the free encyclopedia...
Words: 389 - Pages: 2
...Using Student Self-Reflections to Improve Student Study Habits in the Mathematics Classroom A Capstone Project Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Teaching: Mathematics Nancy Daly Department of Mathematics and Computer Science College of Arts and Sciences Graduate School Minot State University Minot, North Dakota Summer 2011 ii This capstone project was submitted by Nancy Daly Graduate Committee: Dr. Laurie Geller, Chairperson Dr. Cheryl Nilsen Dr. Rebecca Anhorn Dean of Graduate School Dr. Linda Cresap Date of defense: Month day, year iii Abstract Type the abstract here. Do not indent. It should be one block paragraph. The abstract is a summary of your paper. iv Acknowledgements Type your acknowledgements here. Indent each paragraph 0.5 inch. You can thank whomever you choose. v Table of Contents Page Abstract .................................................................................................................. iii Acknowledgements ................................................................................................ iv List of Tables ....................................................................................................... viii List of Figures ........................................................................................................ ix Chapter One: Introduction ................................................................
Words: 7903 - Pages: 32
...ATSS-DCD 21 November 2012 MEMORANDUM FOR All section members SUBJECT: Preparing for the Promotion Board 1. This memorandum will provide you with information that will help you better prepare for the local promotion board. 2. Soldiers attending this promotion board will be evaluated on nine subjects: a. personnel appearance b. military bearing c. self-confidence d. oral expression e. conversational skills f. knowledge of world affairs g. awareness of military programs h. knowledge of basic soldiering I. attitude 3. Three actions that will better prepare all soldiers attending the promotion board are: a. STUDYING. Get a copy of the memorandum that tells when the board is, who the board members are, and what subjects will be asked. Study the questions and answers in the study guide in these nine subjects, but also be prepared to answer other questions. Read the newspaper, watch the news, and be prepared to express your opinions on any local, national, and world events. Know your chain of command and unit history. b. PREPARING YOUR UNIFORM. Reference AR 670-1 for wear and appearance of the uniform. Before board takes place turn your uniform in for alteration’s and cleaning. I will check the proper fit of the uniform of every soldier appearing before the board. c. REHEARSING...
Words: 259 - Pages: 2
...Study Skills Questionnaire Name ________________________________ Date________________ To gain a better understanding of yourself as a learner, it is helpful to identify the study skills you use. You can determine if your study skills need a boost or if they are fine just the way there are now. This informal inventory is a short and quick tool for assessing your study skills. This is not a test, so please ask for assistance when/where you feel you need it. Answer each question as honestly as you can. There are 30 questions. Directions: 1. Read each statement and think about it. 2. Place an X in the column that best describes your current level as it relates to the study statement. Example…. Reading Text Books 1. I browse headings, pictures, chapter questions, and summaries before I read a chapter. Rarely Sometimes X Often If this statement happens to be true some of the time for you, then place an X as shown in the appropriate column (which is “sometimes”). At the end of the questionnaire, you will have a chance to self-score the results. Give it a try! Remember…Applying what you learn from this questionnaire is the real key. For more information about study skills, contact the CONNECT TO SUCCESS OFFICE Room #1655 or dana.kobold@rrcc.edu or 303.914.6317 Please note: Handout content adapted from the University of Central Florida’s Student Academic Resource Center Reading Text Books 1. I browse the headings, pictures, chapter questions and summaries before I start...
Words: 823 - Pages: 4
